Probation, overtime, leave, deductions, notice and gratuity: the numbers UAE employers need, taken from the labour law itself, plus the points where companies most often get them wrong.
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UAE Labour Law Guide for Employers
Most employment disputes in the UAE are not about bad intentions. They come from a contract that says one thing, a payroll that does another, and a final settlement calculated on the wrong salary. The rules for private sector employment are set by Federal Decree-Law No. 33 of 2021 on the Regulation of Employment Relationships and its Implementing Regulation, administered by the Ministry of Human Resources and Emiratisation (MOHRE).
This guide sets out the figures employers actually use, as stated in the decree-law published by MOHRE, with article references so your HR team can check the source. It applies to mainland private sector employers; some free zones and financial free zones apply their own employment regulations.
PROXPAT handles the government side of employment through our PRO services: work permits, contracts, employment visas and cancellations. This page is general guidance, not legal advice; take legal advice on disputes or unusual contracts.
Employment Contracts (Article 8)
- The contract is made in two copies, one kept by the employer and one handed to the worker, using the forms set by the Implementing Regulation.
- Contracts are concluded for a specified period and can be renewed by agreement; an extension or renewal is treated as a continuation of the original term.
- The worker can prove the contract, wage and entitlements by any means of proof, which is why informal side arrangements rarely protect an employer.
For mainland employers the contract is issued alongside the MOHRE work permit, so the job title and salary on both should match.
Probation (Article 9)
| Rule | What the law says |
|---|---|
| Maximum length | 6 months from the start of work |
| How often | Only once with the same employer; if passed, probation counts towards service |
| Employer ends employment | At least 14 days' written notice |
| Worker moves to another UAE employer | At least one month's written notice; the new employer compensates the original employer for recruitment costs unless otherwise agreed |
| Foreign worker leaves the UAE | At least 14 days' written notice; if they return with a new work permit within 3 months, the new employer pays that compensation unless otherwise agreed |
| Notice not respected | The party in breach pays the worker's wage for the notice period or its remainder |
During probation there is no paid sick leave (Article 31), and annual leave can only be taken early if the employer agrees (Article 29).
Working Hours, Overtime and Weekends (Articles 17 to 21)
| Topic | Rule |
|---|---|
| Normal hours | Maximum 8 hours a day or 48 hours a week |
| Overtime limit | No more than 2 hours a day, and total working hours may not exceed 144 hours every 3 weeks, except as the Implementing Regulation allows |
| Overtime pay | Basic wage for the hours plus at least 25% |
| Overtime between 10 pm and 4 am | Basic wage plus at least 50% (shift workers excluded) |
| Working on the weekend | Another day off, or the day's wage plus at least 50% of the basic wage |
| Consecutive weekends | No more than two consecutive weekend days worked, except day workers |
| Weekly rest | A paid weekend of at least one day |
| Commute | Not counted as working time, except for certain categories |
Overtime is calculated on the basic wage. Contracts that pack most of the salary into allowances reduce overtime cost, but they also reduce what the employee sees as fair, and that gap is where many complaints start.
Leave Entitlements (Articles 29 to 32)
| Leave | Entitlement |
|---|---|
| Annual leave | At least 30 days for each year of service, with full wage |
| Annual leave, 6 to 12 months of service | 2 days for each month |
| Final part-year | Leave for the part of the last year worked if service ends before the balance is used |
| Part-time workers | In proportion to actual working hours, as defined in the contract |
| Sick leave (after probation) | Up to 90 days a year: first 15 days full pay, next 30 days half pay, remainder unpaid |
| Maternity leave | 60 days: 45 days full pay and 15 days half pay, plus up to 45 further unpaid days where illness from pregnancy or childbirth prevents return |
| Child needing constant care | 30 days full pay after maternity leave, extendable by 30 days unpaid |
| Parental leave | 5 working days for either parent, within 6 months of the birth |
| Bereavement | 5 days for a spouse; 3 days for a parent, child, sibling, grandchild or grandparent |
| Study leave | 10 working days a year for exams, after at least 2 years of service |
- The employer can set annual leave dates around work needs, but must tell the worker at least one month in advance.
- Sick workers must notify the employer within 3 working days and provide a medical report.
- Sick leave is unpaid where the illness results from the worker's own misconduct, as defined in the Implementing Regulation.
Wage Deductions: The Limits (Article 25)
No amount may be deducted or withheld from wages except in the cases the law lists. The caps matter as much as the reasons:
| Reason for deduction | Limit |
|---|---|
| Recovering an overpayment to the worker | Up to 20% of the wage |
| Penalties under the establishment's approved penalty regulation | Up to 5% of the wage |
| Damage caused by the worker's mistake or breach of instructions | Up to 5 days' wage per month, unless a court approves more |
| Debts under a court judgment | Up to a quarter of the wage, except awarded alimony |
| Loan repayments to the worker | With written consent, without interest, within the monthly limit |
| Statutory contributions, savings fund, approved social schemes | As the relevant rules and written consent allow |
| All deductions combined | Not more than 50% of the wage |
Ending Employment: Notice and Final Settlement (Articles 43 and 53)
| Rule | What the law says |
|---|---|
| Notice period | As agreed in the contract, not less than 30 days and not more than 90 days |
| During notice | The contract continues; the worker receives the full last wage and works if the employer requests |
| Waiving or shortening notice | Possible by agreement, preserving the worker's rights for the agreed notice; the period must be the same for both parties unless it benefits the worker |
| Notice not given | Notice period allowance equal to the wage for the full notice period or its remainder |
| Final payment | Wages and all other entitlements within 14 days of the contract's end |
Ending the contract also means closing the government side properly: the work permit and the residence visa. Leaving either open is the most common reason a former employee's next permit is refused. See visa cancellation and our guide can I cancel my employment visa after 2 months.
End of Service Gratuity (Article 51)
- A full-time foreign worker who completes at least one year of continuous service is entitled to gratuity.
- It is calculated on the last basic wage: 21 days' wage for each of the first five years, and 30 days' wage for each year after that.
- Parts of a year count in proportion, once one year of continuous service is complete.
- Unpaid days of absence are not counted as service.
- Total gratuity may not exceed two years' wage.
- UAE national workers receive end of service benefits under the pensions and social security legislation instead.
How many days of basic wage: worked examples
| Continuous service | Calculation | Days of basic wage |
|---|---|---|
| 11 months | Less than one year | No gratuity |
| 3 years | 3 × 21 | 63 days |
| 3 years 6 months | 3.5 × 21 | 73.5 days |
| 5 years | 5 × 21 | 105 days |
| 7 years | (5 × 21) + (2 × 30) | 165 days |
| 10 years | (5 × 21) + (5 × 30) | 255 days |
Please note: the examples show days of basic wage only. Convert to an amount using the daily basic wage method your payroll and contract apply, deduct only what the law or a judgment allows, and check the two-year cap for long service.
Paying Wages Through the Wage Protection System (WPS)
MOHRE requires private-sector establishments to pay wages through the Wage Protection System, an electronic system that transfers wages through approved banks, financial institutions and exchange houses. Ministerial Resolution No. 340 of 2026, in force from 1 June 2026, sets the first day of each Gregorian month as the unified due date for the previous month's wages, and treats any payment after that date as a delay.
| Topic | What the resolution says |
|---|---|
| Legal basis | Ministerial Resolution No. 340 of 2026, in force 1 June 2026, replacing the 2022 resolution |
| Due date | The first day of each Gregorian month, for the preceding month's wages |
| When an establishment is compliant | It transfers no less than 85% of the total wages due by the due date |
| When a worker counts as paid | They receive no less than 85% of their entitled wage and the difference is a lawful deduction under Article 25 of this Decree-Law |
| First real consequence | New work permits are suspended on the fifth day after the due date |
| Domestic workers | WPS is mandatory for specific domestic worker jobs and optional for the rest of that category |
Enforcement escalates on a fixed timetable, from monitoring and alerts through fines and reclassification to precautionary attachment and a travel ban on the person in charge. The full day-by-day ladder, the fine amounts, the eleven exclusions and the rules on delegating payroll are in our UAE Wage Protection System guide.
Emiratisation Targets for Private Companies
| Company size | Target |
|---|---|
| 50 or more employees | 2% annual growth in Emirati employees in skilled positions, towards a 10% Emiratisation rate by the end of 2026 |
| 20 to 49 employees in specified economic sectors | Recruit at least one UAE national and retain those already employed |
- Financial contributions for missed targets. MOHRE set the contribution for 2022 at AED 6,000 a month (AED 72,000 a year) for each Emirati not appointed, increasing by AED 1,000 each year until 2026.
- Deadlines. MOHRE asked companies to meet 2025 targets before 31 December 2025, with contributions imposed from 1 January 2026 on those that did not.
- Enforcement. MOHRE monitors compliance annually and uses AI tools to flag fake Emiratisation. Violations can lead to legal action and a downgraded establishment classification.
- Incentives. Companies in the Emiratisation Partners Club can receive up to 80% discounts on MOHRE service fees and priority in government procurement.
- Hiring channel. MOHRE directs companies to the Nafis platform to connect with Emirati job seekers.
Because MOHRE classification also affects work permit fees, Emiratisation compliance has a direct cost effect beyond the contributions themselves.
Employer Obligations Checklist (Article 13)
Keep each worker's file for at least two years after their service ends
Never withhold a worker's official documents, or force them to leave the UAE when employment ends
Provide written work rules: instructions, penalties, promotions and rewards
Provide licensed accommodation, or an accommodation allowance in cash or within the wage
Invest in minimum training and skills development
Provide protection against occupational injuries and diseases
Alongside these, keep the government file current: valid establishment card, work permits that match actual roles, and cancellations filed when people leave.
Where PROXPAT Fits
Work permit issuance, renewal and amendment
Contract preparation aligned with the permit
Employment visa, medical and Emirates ID
Role and salary changes reflected on the permit
Labour and immigration cancellation
Establishment card and quota management
Monthly PRO retainer for regular hiring
Coordination with your legal adviser on disputes
Frequently Asked Questions
Handle every employment transaction correctly.
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